Qatari liability for sponsored company...
If a Qatari sponsors a foreign company in return for of 51% of the company's Qatari shares, and due to the current economic crisis the company has taken on large debt, and will probably become insolvent, and most likely bankrupt,what are the liability and obligations effects to/on the Qatari sponsor?
Will the Qatari be responsible for those debts and liabilities of the company in any way?
Thanks...
Qatari will be responsible for personal guarantees. Both qatari and expatriate will be responsible for the cheques issued. This is my observation from experience. For more information, better you may refer Companies Act thru the help of a lawyer practicing in Civil Court.
No MD,,I was wondering if there are guarantees, bonds, etc. associated with the sponsorship.
Otherwise sponsorship would be pretty loosy-goosey, which it may or may not be. I don't know.
That is why I am asking if someone actually knows the black letter law on this one.
Thx
Limited Liability means liability up to the amount that was declared as capital when the W.L.L. was registered. His private property cannot be debted.